Question

E3-4 Computing Unknown Manufacturing Costs for Process Costing [LO 3-1] The following four companies use a process cost system: Required: Treating each case independently, find the missing amounts. Solana Co. Lindsay Company Vista Co. $ 234,200 Conversion Cost Ray Inc. $ 55,350 $ 24,800 Direct Labor $ 12,800 1,250 $ Depreciation Manufacturing Overhead $ $ 16,900 143,100 $ $ $ $ $ $ 42,500 2,150 25,000 15,850 88,600 4,700 Rent 780 Direct Materials Supervisor's Salary Utilities $ $ $ 361,550 $ 18,950 $ 23,700 $ 39,100 2,200 8,350 $ $ $ 16,550 1,400 580

Answer 1

Solana Co.

Conversion costs = Direct labor + Manufacturing overheads

= 42,500 + 25,000

= $67,500

Manufacturing overheads = Depreciation + Rent + Supervisory salary + Utilities

25,000 = 2,150 + 15,850 + 4,700 + Utilities

Utilities = $2,300

Vista Co.

Conversion costs = Direct labor + Manufacturing overheads

234,200 = Direct labor + 143,100

Direct labor = $91,100

Manufacturing overheads = Depreciation + Rent + Supervisory salary + Utilities

143,100 = 16,900 + Rent + 18,950 + 23,700

Rent = $83,550

Ray Inc.

Conversion costs = Direct labor + Manufacturing overheads

55,350 = 24,800 + Manufacturing overheads

Manufacturing overheads = $30,550

Manufacturing overheads = Depreciation + Rent + Supervisory salary + Utilities

30,550 = Depreciation + 9,600 + 2,200 + 8,350

Depreciation = $10,400

Lindsay Company

Manufacturing overheads = Depreciation + Rent + Supervisory salary + Utilities

= 1,250 + 780 + 1,400 + 580

= $4,010

Conversion costs = Direct labor + Manufacturing overheads

= 12,800 + 4,010

= $16,810

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